Samsung says demand for memory chips and rapid smartphone sales boosted net profit in Q1 2022

South Korean tech giant Samsung Electronics posted a 58.57% rise in first-quarter net profit on Thursday, largely on the back of steady demand for memory chips and buoyant smartphone sales.

The world’s largest memory chipmaker is the flagship subsidiary of giant Samsung Group, by far the largest of the family-controlled empires known as the chaebols that dominate business in South Korea, Asia’s fourth-largest economy .

The conglomerate is crucial to the economic health of the South – its aggregate revenue is equivalent to one-fifth of the national gross domestic product.

The company said net profit for the January to March period was KRW 11.32 trillion (about Rs 68,155 crore), up 58.57% from the same period a year earlier. .

The tech industry has been hit hard by a shortage of components for making chips, blamed on soaring global demand for electronics and the disruption of supply chains caused by the pandemic.

But analysts say it has largely benefited the world’s biggest chipmaker.

Last year saw a spike in chip prices amid strong demand for those used in personal devices and data centers, helping the company achieve record annual sales.

Samsung’s performance “continues to be driven by the semiconductor segment, supported by demand for memory chips – both DRAM and NAND – from data centers,” vice-president Gloria Tsuen told AFP. President of Moody’s Investors Service.

Tsuen added that a disruption at a rival NAND flash chip factory – owned by US firm Western Digital and Japan’s Kioxia – also benefited Samsung “due to reduced supply in the market”.


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